1969 (11) TMI 77 - HC - VAT and Sales Tax

Summary

Issues:
Jurisdiction of Sales Tax Officer, Sector VI for reassessment under section 21 after transfer of the case from Sales Tax Officer, Sector I.

Analysis:
The judgment involves a dispute regarding the jurisdiction of the Sales Tax Officer, Sector VI for reassessment under section 21 of the U.P. Sales Tax Act after the case was transferred from Sales Tax Officer, Sector I. The case pertains to an assessee who carried on a cloth business and was being assessed for the year 1953-54. The Commissioner transferred the case to Sector VI, where an assessment was made. Subsequently, it was discovered that the imported cloth turnover was underreported, leading to proceedings under section 21 for reassessment. The issue was whether the Sales Tax Officer, Sector I, or Sector VI had jurisdiction for reassessment.

The judgment delves into the definitions provided by the U.P. Sales Tax Act, emphasizing that the "assessing authority" under section 21 is the authority having jurisdiction to assess the dealer. It is highlighted that the Sales Tax Officer, Sector VI, being the assessing authority after the transfer, had the jurisdiction for reassessment. The power to transfer cases between assessing authorities is governed by rule 81, allowing the Commissioner to transfer cases at any stage. The judgment clarifies that the transferred case encompasses all proceedings related to the assessment year, including reassessment under section 21.

Drawing parallels with the Indian Income-tax Act, the judgment cites precedents where reassessment was considered part of the original assessment proceedings. The court opines that the transferred case includes all proceedings related to the assessment year, such as reopening assessments or rectifications. Therefore, the Sales Tax Officer, Sector VI, had the authority to conduct reassessment under section 21 as part of the transferred case.

In conclusion, the judgment determines that the Sales Tax Officer, Sector VI, had the jurisdiction for reassessment under section 21 after the case transfer from Sector I. It asserts that all proceedings related to the assessment year fall under the transferred case, allowing for reassessment by the designated assessing authority. The judgment answers the referred question in favor of the Sales Tax Officer, Sector VI, and awards costs to the assessee. The concurring opinion of Justice Gulati reaffirms the decision, resolving the jurisdictional dispute effectively.